Institutional investors have recently fueled optimism in the Cardano (ADA) community, anticipating increased capital inflow following ETF applications from Canary Capital and Grayscale. However, the Securities and Exchange Commission (SEC) delayed its decision on Canary Capital’s ADA ETF application until May 29, cooling market excitement.
Analyst Highlights Key Price Levels for ADA
Crypto analyst Dan Gambardello believes ADA is at a crucial point. In his analysis on Thursday, March 13, he pointed out that the token is struggling to maintain its 200-week moving average, which sits between $0.73 and $0.74. Holding above this level is critical to maintaining a bullish trend, as many traders use the 200-week MA to gauge long-term market direction.
Gambardello also noted that ADA’s price fluctuates between the 50-week and 20-week moving averages, similar to the 2021 bull market cycle before it broke out. However, he cautioned that ADA might not sustain this range in the short term, especially if the Federal Reserve does not meet market expectations for an interest rate cut.
Possible Downside Risks and Breakout Potential
“If the market doesn’t get what it wants from the Fed, crypto could experience further downside volatility,” Gambardello warned. He suggested that ADA could drop to around $0.50, a decline of more than 31% from its current price of $0.73.
For bullish momentum, ADA needs to hold its 200-week MA and break above the 20-day MA at $0.78 and the 50-day MA at $0.80. Gambardello believes that clearing these levels could push the price toward $1.25, a key resistance he describes as “the upper end of the bull market doors.”
With the SEC’s delay adding uncertainty and macroeconomic factors influencing market sentiment, traders will closely monitor ADA’s price action in the coming weeks.
